CONSTRUCTION group Raubex yesterday reported a strong performance for the first half of the year, boosted largely by its recent trail of acquisitions.

Financial director Francois Diedrechsen said the results were in line with expectations and that the group’s pre listing growth strategy was beginning to pay off. Since listing on the JSE in March last year, the company has made several acquisitions, which have ramped up its order book to just under R5bn and positioned it well to take advantage of the billions of rands being spent on Gauteng’s road improvement programme.

Operating profit jumped 108,1% to R398m from R191,2m in the previous comparable period, while headline earnings per share grew 80,5% to 144,6c per share from 80,1c. Revenue increased 131,7% to R2,23bn from R963,5m.

However, group operating margin decreased 10,1% from 19,8% to 17,8% compared with the corresponding prior year period as a result of the acquisitions concluded towards the end of last year, as well as its 5% exposure to the poorly performing residential market.

“While the acquisitions have enhanced our earnings, they have also had dilutive effects on our margins. The fact that the residential property market has not been growing at all has also affected our margins,” Diedrechsen said.

The results included the first set of earnings from the acquisitions completed last year, and which gave Raubex the capacity and depth of skills to take full advantage of the accelerated demand.

“During the period, we also successfully bedded down a number of acquisitions, the financial effects of which are included in this set of results,” Diedrechsen said. “These acquisitions have proved to be value-enhancing and are performing well. Importantly, the depth and breadth of skills and capacity that they’ve brought to the group positioned us well to continue taking full advantage of the spend driven by the government and private sector.”

Raubex said it had especially benefited from the government-led investment programme in national road expansion and rehabilitation. The group has over the past year successfully made five strategic acquisitions, as it geared itself up to meet the increased demand created by the road upgrade programme.

Early this year, the group acquired Bonn Plant Hire and the business of Akasia Road Surfacing for R117m, which fitted in the group’s Roadmac division, specialising in road construction, road surfacing and asphalt manufacturing.

Liberty International reported that rental income rose 4% in the nine months to September, to £281,3m from £270,5m last year.

Growthpoint Properties Limited announced 14,4% growth in distribution per linked unit for its financial year ended 30 June 2008, with both the company’s earnings and its distributions outperforming forecasts

Reflecting the defensive quality of its shopping centre assets in a depressed economy, JSE retail property fund Hyprop Investments posted a 15,4% increase in distributions to 150 cents for the six months to June 2008

Having assessed the possibility of merging with a number of its funds under management, Madison Property Fund Managers has lifted the cautionary under which it has been trading since March 2008

Growthpoint Properties Limited has secured R2 billion in additional debt facilities comprising an unsecured 5-year loan from Nedbank Corporate Property Finance – the largest unsecured facility to be granted to a South African property company

Redefine Income Fund has reported that its interim distribution increased 12.9%.

Corovest has bought a 50% stake in the UK-based Wichford Property Fund Management for £11.0 million.

JSE-listed property loan stock Premium Properties Limited has reported a total distribution for the year to investors of 84,5 cents per linked unit, some 16.6% higher than that paid for its previous financial year.

Shoprite is steadily advancing its presence on the continent, with two supermarkets planned for the Democratic Republic of Congo and an initiative in place to find suitable sites in Nigeria